oussama94
05-28-2017, 23:50
A more formal index is put
out by the Organization for Economic Cooperation and Development. Under
a joint OECD-Eurostat PPP program, the OECD and Eurostat share
the responsibility for calculating PPPs. This latest information on which
currencies are under- or overvalued against the U.S. dollar can be found
on the OECD’s web site at www.oecd.org. The OECD publishes a table
that shows the price levels for the major industrialized countries. Each
column states the number of specified monetary units needed in each of
the countries listed to buy the same representative basket of consumer
goods and services. In each case the representative basket costs 100 units
in the country whose currency is specified. The chart that is then created
compares the PPP of a currency with its actual exchange rate. The chart
is updated weekly to reflect the current exchange rate. It is also updated
about twice a year to reflect new estimates of PPP. The PPP estimates are
taken from studies carried out by the OECD; however, they should not be
taken as definitive. Different methods of calculation will arrive at different
PPP rates
out by the Organization for Economic Cooperation and Development. Under
a joint OECD-Eurostat PPP program, the OECD and Eurostat share
the responsibility for calculating PPPs. This latest information on which
currencies are under- or overvalued against the U.S. dollar can be found
on the OECD’s web site at www.oecd.org. The OECD publishes a table
that shows the price levels for the major industrialized countries. Each
column states the number of specified monetary units needed in each of
the countries listed to buy the same representative basket of consumer
goods and services. In each case the representative basket costs 100 units
in the country whose currency is specified. The chart that is then created
compares the PPP of a currency with its actual exchange rate. The chart
is updated weekly to reflect the current exchange rate. It is also updated
about twice a year to reflect new estimates of PPP. The PPP estimates are
taken from studies carried out by the OECD; however, they should not be
taken as definitive. Different methods of calculation will arrive at different
PPP rates